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Problem 3 (Put option valuation in 1-step binomial model) Consider a put option on the Sinopec stock in the following 1-step binomial model. - Suppose

Problem 3 (Put option valuation in 1-step binomial model) Consider a put option on the Sinopec stock in the following 1-step binomial model. - Suppose the strike price =K, with pup>K>pdown. - The interest rate over the 1-step period is r. (a) (b) Lompute the corresponang risk-neutra prodablty

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